Corporate Profits and Workers' Income

"Capitalists are grabbing a rising share of national income at the expense of workers." That is the headline of a recent Economist article.

The article goes on to say "However, there is another factor that might have raised the return on capital relative to labour in a lasting way, namely the integration of China and India into the world economy, along with their vast supply of cheap labour. To the extent that this increases the global ratio of labour to capital, it will lift the relative return to capital. Outsourcing may not have destroyed many jobs in developed economies, but the threat that firms could produce offshore helps to keep a lid on wages. As a result, the share of profits in national income could stay relatively high for a period."

So, what is your take? Here for more.